Transaction Further Advances Stanley Black & Decker's Portfolio Transformation and Strategic Focus on Core Businesses
NEW BRITAIN, Conn. , June 28, 2022 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced it has signed a definitive agreement for the sale of its STANLEY Oil & Gas business to Pipeline Technique Limited, a leading provider of solutions to the energy industry. The pending sale of STANLEY Oil & Gas encompasses pipeline services and equipment businesses including CRC-Evans Pipeline International, Pipeline Induction Heat Ltd. and STANLEY Inspection, which generated combined revenues of approximately $140 million in 2021.
Don Allan, Stanley Black & Decker's President & CFO, stated, "The sale of our oil and gas business builds on our strategic commitment to streamlining our company to focus on our core Tools & Outdoor and Industrial businesses. The portfolio simplification is designed to leverage our leadership positions to drive innovation, organic growth and margin expansion, as well as generate significant long-term value for our shareholders. On behalf of the entire Stanley Black & Decker organization, I want to thank our STANLEY Oil & Gas team members for their valuable contributions over the years."
Stanley Black & Decker expects to incur a pre-tax, non-cash charge of approximately $125 to $200 million related to the write-down of the Oil & Gas net assets, which will be excluded from adjusted earnings. The results of the Oil & Gas business will remain in continuing operations and will not be reclassified as discontinued operations. The transaction is subject to regulatory approval and other customary closing conditions.
About STANLEY Oil & Gas
STANLEY Oil & Gas provides world-class pipeline services and equipment in more than 100 countries, offshore and onshore, working under the most extreme conditions and over the most difficult terrains. The business delivers the infrastructure and resources needed to serve pipeline contractors anywhere on earth — ensuring higher quality welds and lower downtime from start to finish. To learn more visit CRC-Evans Pipeline International, a STANLEY Oil & Gas company, at www.crc-evans.com.
About Stanley Black & Decker
Headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is the world's largest tool company operating nearly 50 manufacturing facilities across America and more than 100 worldwide. Guided by its purpose – for those who make the world – the company's more than 60,000 diverse and high-performing employees produce innovative, award-winning power tools, hand tools, storage, digital tool solutions, lifestyle products, outdoor products, engineered fasteners and other industrial equipment to support the world's makers, creators, tradespeople and builders. The Company's iconic brands include DEWALT, BLACK+DECKER, CRAFTSMAN, STANLEY, Cub Cadet, Hustler and Troy-Bilt. Recognized for its leadership in environmental, social and governance (ESG), Stanley Black & Decker strives to be a force for good in support of its communities, employees, customers and other stakeholders. To learn more visit: www.stanleyblackanddecker.com.
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Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Stanley Black & Decker makes forward-looking statements in this press release which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements made in this press release, include, but are not limited to, statements concerning: consummation of the STANLEY Oil & Gas sale transaction; streamlining the Company to focus on core Tools & Outdoor and Industrial businesses; leveraging the Company's leadership positions to drive innovation, organic growth and margin expansion; and generating significant long-term value for our shareholders.
You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future events and involve risks, uncertainties and other known and unknown factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements, including, but not limited to: the failure to consummate, or a delay in the consummation of, the STANLEY Oil & Gas sale transaction for various reasons (including but not limited to failure to receive, or delay in receiving, required regulatory approvals and meet customary closing conditions); the completion of the STANLEY Oil & Gas sale transaction failing to result in the intended benefits for streamlining the Company and generating value for shareholders.
Forward-looking statements made herein are also subject to risks and uncertainties, described in: Stanley Black & Decker's 2021 Annual Report on Form 10-K, its subsequently filed Quarterly Reports on Form 10-Q; and other filings Stanley Black & Decker makes with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements. Stanley Black & Decker makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.
SOURCE Stanley Black & Decker